As Australians brace for another interest rate hike from the Reserve Bank, adding to already rising cost of living pressures, the nation’s biggest bank has come up with a novel sweetener for its customers – free internet.
The RBA is widely expected to follow-up on its 25 basis point cash rate hike in May with a further rise of as much as 50 basis points when it holds its monthly board meeting on Tuesday.
Recent research by the Commonwealth Bank of Australia found a vast majority of home owners have been preparing for higher interest rates, even before the RBA pulled the trigger last month.
It also found that in preparation a third were looking to switch to cheaper providers for utilities and services to help manage costs.
CBA has jumped on the findings and is offering pre-approved home loan customers a free NBN plan for three years.
The offer, in partnership with telecom provider More, would save eligible home buyers more than $2700.
CBA, which has already indicated it won’t cut its margins any further to compete in the home lending market, is also offering its existing customers 30 per cent off More NBN plans for the first 12 months when they sign up using their credit or debit card as their bill payment method.
“We know that the rising cost of living is being felt by all Australians, particularly those looking to purchase a property in the current environment,” CBA executive general manager of home buying Michael Baumann said.
“We want to support pre-approved home loan customers where we can, and that includes longer-term savings on essential and ongoing bills and commitments like internet.”
Financial comparison site Finder said a rise in the cash rate to 0.75 per cent from 0.35 per cent, as some economists are predicting from Tuesday’s RBA meeting, would add a further $125 to the monthly repayments on a $600,000 loan or $1500 over a year.